Learnings from BIZCOVER America

IDEAS on cost mgmt

• Take 3 yrs avg of gross/net profits• Take 3 yrs avg of all costs• Convert avg costs as a % of avg profits• Project sales and profits for the current year

as multiplier of the avg values• Breakup the sales and profits as on a monthly

number based on historical data

IDEAS on cost mgmt … contd

• Lock costs of current year as a % of (avg profits* multiplier)

• break up the avg costs into monthly cost based on historical data

• Track sales and costs on monthly and year to date basis

• Reduce costs wherever possible without losing functionality

• Do not pass on cost to the product/customer

Gems from Mr. Neethimohan’s talk

• Doing the right thing is more important that doing things right

• Where margins are more try and reduce cost, where margins are low look to add value, look for newer markets or look for a new product

• I^2R^2• Information- Response- Involvement-

Responsibility

Key to employee happiness• Hire for attitude train for skill• Provide adequate training and update training

on an ongoing basis• Ensure job satisfaction• Recognize publically /censure in private• Remuneration should be commensurate with

skill/experience and above all market value

Key to employee happiness….contd

• Have a career path with clear growth charts for every employee

• Have a training calendar for each staff• Delegate continously and delegate more• Have a positive outlook always• Create a transparent work environment and

bonding

Out of the box/ contrarian ideas

• To reduce salary advance defaults / misuse start a chit fund if the numbers permit

• Segregate waste, try to salvage value on HDPE packing

• Analyse all operations and eliminate unnecessary /wateful operations and costs

• Discard old ideas when they outlive their time• Do not be emotional in business

Zappos Family Core Values

• Deliver WOW through service• Embrace change and drive change• Create fun and a little weirdness• Be adventurous, creative and a Open minded• Pursue growth and Learning• Build open and honest relationship with

communication• Build a positive team and family spirit

• Do more with less• Be passionate and determined• Be humble

One picture says it all

Thank You